The domestic equity markets witnessed a choppy trading session on Tuesday, with the benchmark Nifty 50 index closing 0.7% lower at 24,826.20. The Bank Nifty also ended in the red, shedding 0.39% to settle at 55,352.80. Sectorally, IT, FMCG, and auto stocks dragged the indices down, while selective buying in Pharma and Realty helped limit broader losses. The broader indices ended the session nearly flat.
Trade Setup for Wednesday
The Nifty index continues to face stiff resistance near the 25,116 mark. According to Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities, a decisive move above this level is essential to revive bullish sentiment. On the downside, support levels are expected around 24,700 and 24,462.
For Bank Nifty, resistance is pegged between 56,000–56,100, with a key support level near 54,776, noted Hrishikesh Yedve, AVP – Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
Global Cues and Earnings Outlook
Market participants are closely monitoring global developments, particularly the upcoming release of the U.S. Federal Reserve’s FOMC meeting minutes. These are expected to shed light on the central bank’s stance in the face of persistent inflation and fiscal concerns. Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, said that global volatility, ongoing trade developments, and pending Q4 earnings are likely to keep the market on edge in the short term.
Stocks to Watch on Wednesday
Here are some expert-recommended stock picks for today:
Sumeet Bagadia (Choice Broking)
- Shankara Building Products Ltd (SHANKARA): Recommended buy at ₹821.3 with a target of ₹877 and stop loss at ₹790. The stock maintains a bullish trend, having recently hit a 52-week high of ₹828.9. It continues to form higher highs and higher lows, with strong support from key EMAs.
- Hitachi Energy India Ltd (POWERINDIA): Suggested entry at ₹17,220 with a target of ₹18,400 and stop loss at ₹16,600. The stock broke past previous resistance levels on high volume, signaling strong bullish momentum.
Ganesh Dongre (Anand Rathi)
- Chambal Fertilisers & Chemicals Ltd (CHAMBLFERT): Buy at ₹594 with a target of ₹620 and stop loss at ₹580. The stock shows sustained bullishness, supported by a strong base near ₹580.
- Bharat Electronics Ltd (BEL): Buy at ₹386, target of ₹405, and stop loss at ₹375. BEL is trading with a positive outlook, supported by key technical indicators.
- ICICI Bank Ltd (ICICIBANK): Entry recommended at ₹1,445 with a target of ₹1,470 and stop loss at ₹1,420. A bullish reversal pattern hints at short-term upside potential.
Shiju Koothupalakkal (Prabhudas Lilladher)
- HFCL Ltd (HFCL): Buy at ₹87.30 with a target of ₹93 and stop loss at ₹85. The stock has formed a higher bottom pattern and moved past the 50EMA, suggesting further upside.
- Welspun Corp Ltd (WELCORP): Suggested buy at ₹783 for a target of ₹820 and stop loss at ₹767. After a consolidation phase, the stock is showing signs of strength, supported by a bounce from key moving averages.
With domestic indices struggling to maintain higher levels and global uncertainty looming, market participants are advised to stay cautious. Technical cues suggest potential for selective upside, especially in stocks with strong fundamentals and favorable chart patterns.
Investors are advised to keep an eye on global indicators and upcoming domestic data while managing risk with strict stop losses.